Nigeria: Sovereign Bond Issuance Brings US$537 Mil. for Nigerian Federal Government in Debt Auction

May 26, 2010

On 20 May 2010, Nigeria raised N80 billion (US$537 million) from the sale of 20-year, 5-year and 3-year sovereign bonds at its fifth debt auction of the year, according to a statement by Nigeria's Debt Management Office (DMO).

Successful bids were allotted at the marginal rates of 10 percent, 9 percent and 8.25 percent respectively. The 20-year note raised a total of 30 billion Naira, while the five-year and three-year denominations raised 25 billion Naira each. The original coupon rates of 5.5 percent for 3-year bonds, 4 percent for 5-year bonds and 8.5 percent for 20-year bonds “will be maintained,” the statement said. This year Nigeria plans to sell 867.5 billion naira worth of bonds, just under a fifth of the 4.6 trillion planned for budget-deficit financing, said Abraham Nwankwo, Director General of the Debt Management Office.